Todd Morgan pleads not guilty at federal arraignment Thursday
Rochester, N.Y. – Todd Morgan, the son of prominent developer Robert Morgan, entered a not guilty plea at his arraignment in federal court Thursday.
Todd Morgan is accused of using his role as project manager to fudge income figures, inflate the number of renters and stage apartments to make it look like they were fuller and more profitable than they were.
Investigators say banks were conned into lending more money than they should have for seven projects.
Federal investigators say Todd Morgan conspired with two mortgage brokers and his cousin, Kevin, to defraud banks of more than $167 million.
Outside of court, his attorney offered little detail on the strategy moving forward, saying he did not wish to talk about the case.
The indictment makes no mention of Robert Morgan. Asked whether Morgan knew what his son and nephew were up to, U.S. Attorney James Kennedy said he could not answer the question, but also said, “We are looking at everything.”
Last week, the FBI raided Morgan Communities headquarters. The request for a search warrant included copies of emails from within Morgan Management – Robert Morgan copied in to a memo saying lenders should be presented with figures to justify the size of the loan. The email was sent by Kevin Morgan. He appears in court next week.
Todd Morgan was released on $25,000 bond.